Forex Today: Panic and relief both backed the dollar

Here is what you need to know on Thursday, January 9th:

  •  At the beginning of the day, Iran launched a missile attack on US military bases in Iraq, sending speculative interest rushing into safe-haven assets. Initial reports suggested multiple US casualties, but it was later denied.
  • Hopes that hostilities have come to an end triggered a U-turn in markets. Such hopes were fueled by comments from both sides. Mohammad Javad Zarif, Iran’s foreign minister, declared that the country “took and concluded proportionate measures in self-defence,” adding they won’t seek escalation or war.  US President Trump, on the other hand, hinted economic sanctions but no further retaliation.
  • The EUR/USD remained under pressure, ending the day barely above 1.1100 on the back of resurgent dollar’s demand.
  • The GBP/USD pair also eased, although it held within familiar levels, as speculative interest is waiting for a Brexit update. The UK Parliament vote on PM Johnson’s Withdrawal Agreement Bill, expected to take place this Thursday.
  • European Commission President Ursula von der Leyen said that she believes that a full EU-UK partnership deal can’t be achieved by the end of 2020.
  • USD/JPY soared past 109.00 on a better market mood.
  • Wall Street reverted pre-opening losses, posting substantial gains and settling near record highs.
  • Spot gold soared to 1,611, to close the day sharply lower at around 1,555.
  • Crude oil prices plummeted after US President Trump said they don’t need anybody’s oil.WTI settled below $60.00 a barrel.
  • Cryptocurrencies trimmed early gains ahead of the close.BTC/USD settled at around $8,000.
  • Crypto Today: Bitcoin set to retest critically breached range block

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